HUD's Bold Path Toward Efficiency, Accountability, and Culture Change

Original Broadcast 5/4/25

When Irv Dennis returned as Acting Chief Financial Officer of the Department of Housing and Urban Development (HUD), he came with a clear objective: institutionalizing lasting reforms that modernize operations, boost accountability, and embed a culture of performance. In his interview on Fed Gov Today with Francis Rose, Dennis unveiled the HUD Efficiency Task Force—a comprehensive initiative aimed at sustainability across grant management, contract oversight, IT modernization, and workforce performance.

A key area of focus is HUD’s sprawling grant ecosystem. With $78 billion in annual grant disbursements and 65 different grant programs (up from 60 in his previous tenure), Dennis emphasized the inefficiency of siloed systems. His vision includes establishing a centralized Center of Excellence to unify grant processing under one simplified system. This initiative aims to reduce administrative burden, accelerate funding to communities, and enhance program execution.

Just as critical is Dennis's plan to improve financial transparency. “We do not have great visibility to what happens to the funds once they leave HUD,” he admitted. To address this gap, the agency is deploying data analytics and building a “data lake” that will provide insight into fund disbursement to subrecipients—including public housing authorities and state agencies. By leveraging artificial intelligence, HUD intends to detect irregularities, monitor contractor performance, and identify inefficiencies or potential misuse of funds. “This isn’t just about cash management accountability—it’s also about mission delivery,” Dennis stated. “If money is being wasted, it's not reaching the people we serve.”

Contract oversight is another pillar of the Task Force. Dennis acknowledged that while there may not be widespread fraud, there are recurring issues with waste and underperformance among contractors. “We’re putting processes in place to ensure deliverables are met efficiently and on time,” he said. That includes collaboration with HUD’s acquisition personnel and program managers to install performance metrics and accountability frameworks.

IT modernization remains foundational to achieving many of these objectives. Dennis pointed out that HUD’s existing IT systems are old, complex, and lack interoperability. The upcoming arrival of a new CIO with expertise in modernization and AI integration will help accelerate efforts. Automation, AI-driven tools, and consolidated processes are all on the table to replace labor-intensive, manual workflows.

A unique aspect of Dennis’s strategy is the emphasis on transforming HUD’s internal culture. He advocates for mentorship, training, and giving employees the tools they need to succeed. “If the workforce is getting leaner, the IT must get smarter,” he said. For Dennis, modernization is not just technological—it’s cultural. “You build a bridge, and it’s hard while you’re doing it. But once it’s done, it’s a beautiful thing.”

In a time of budget constraints and rising expectations, HUD’s Efficiency Task Force may serve as a model for other federal agencies. With strong internal relationships and prior experience in place, Dennis is determined to see the effort become a permanent, sustainable feature of the department.